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HKScan Group Environmental Policy

1. Scope and Objectives of the Policy

HKScan is committed to mitigate the environmental impact of its operations. This Environmental Policy identifies the environmental impact management principles, and it shall be complied within the whole HKScan Group and it applies to the whole supply chain, which must commit to these principles.

2. Environmental work as a part of the HKScan strategy

For HKScan, mitigation of environmental impacts is a strategically important focus area and a core element of HKScan’s Corporate Responsibility programme and is included in the annual business planning process. HKScan’s Zero Carbon programme defines targets and actions towards climate impact mitigation and adaptation.

3. Compliance and environmental management

HKScan is committed to meet applicable environmental protection legislation and regulations. We answer the expectations from our stakeholders and the society by evaluating and developing our operations towards increased environmental efficiency. We engage in open discussion with the stakeholders.

Environmental management at HKScan is based on a certified environmental management system (ISO 14001 standard) where environmental risks have been defined, and indicators and targets have been set for each identified environmental aspect. The suitability, adequacy and effectiveness of the environmental management system is evaluated each year by internal and external audits as well as part of the management review process on Business Unit level.

We follow the principle of continuous improvement, and environmental aspects are part of the company’s decision-making process. We ensure adequate resources to enhance our environmental performance and train our personnel. We prevent environmental risks proactively by careful investigation of environmental observations and deviations. We report the results, development plans and targets of our environmental activities annually. We communicate our environmental actions regularly to our personnel and other stakeholders.

Our suppliers are required to operate in accordance with all applicable environmental statutory and regulatory requirements. Our suppliers must work to minimize environmental risks and impacts in their own operations and supply chain in accordance with the principle of continuous improvement. HKScan encourages its suppliers to work systematically in accordance with the ISO 14001 standard principles.

Main principles

  • We follow and regularly monitor environmental legislation and regulations and operate in accordance with these as well as the environmental permits issued to our production units. We cooperate with the authorities, our customers and other stakeholders to ensure that our environmental work meets the expectations and requirements set to our operations.
  • We reduce climate and environmental impacts at our production units and in transports. This means, among other things, improving energy efficiency, decreasing energy consumption, switching to renewable energy sources and reduction of water consumption.
  • We work to improve material efficiency. This means the development of packaging materials, following the waste hierarchy, minimizing material loss from processes, efficient use of animal raw material. We promote circular economy throughout our value chain.
  • We promote decreasing the environmental impact of primary production at our contract farms and our own farms together with our producers and other partners.
  • We take the environmental aspects into consideration in procurement, subcontracting and investments.
  • We work to preserve biodiversity and forests.
  • We require no-deforestation supply chains and do not support the conversion of other natural ecosystems.

4. Responsibilities and roles

The Board of Directors approves this policy. Group and Business Unit management are responsible for planning and resourcing operations, and actual execution in line with the policy.

HKScan expects each of its employee to take responsibility and to comply with this Policy and all guidelines below it.

5. Controls and reviews

The environmental work progress is reported to the Board of Directors as part of the Group’s responsibility work. This policy is reviewed by the Board of Directors regularly. The Board evaluates regularly the management approach and the effectiveness of implementation of the Environmental policy.

6. Policy changes

Amendments to this Policy must be approved by the BoD, except for amendments, which are more of a technical nature and which do not alter the overall concept of the Policy. Such technical amendments shall be approved by the Policy owner. All modifications made shall be informed to the BoD.

7. Communication and implementation

Corporate Responsibility function is responsible for communicating, training and implementing this Policy to the whole Group to ensure that all employees have a clear and consistent understanding of the Policy.

8. Internal controls and reviews

Policy owner is accountable for making sure that there are adequate internal controls in place to ensure compliance with the Policy, related guidelines, instructions and processes. Regular reviews by internal and external parties shall be conducted to assess implementation and compliance with this Policy.

9. Consequences of non-compliance

In case an employee of HKScan is breaching this Policy, any breach will be subject to appropriate consequences, including possible termination of the employment relationship, and the breach can be reported to relevant local authorities in case HKScan suspects that the behavior of the employee in breach is also against relevant legislation.

 

Approved by HKScan's Board of Directors on 9 February 2022.